The Two-Speed Plan: Big Goals from the Top, Experiments Below

China’s AI plan balances strict national rules with fun trials in different areas. It started in the 14th Five-Year Plan and got a big push from President Xi Jinping in 2023, who said AI should help the real economy.

Unlike the US, which chases big breakthroughs like super-smart chatbots, China focuses on “diffusion”—getting AI into factories, health care, and farms to make things faster and better.

Here’s how it works: The central government sets the rules through groups like the Cyberspace Administration of China (CAC). Then, the 31 provinces and cities—like Shanghai and Shenzhen—add their own bonuses. This has led to over 4,700 new AI companies in 2024, with money pouring in 20% more than the year before. It’s practical: Real power comes from using AI everywhere, not just inventing it.

Compute Vouchers: Cheap Power for AI Training

US rules make it hard for China to get top chips like NVIDIA’s H100, so they’re getting creative. Compute vouchers are like discount coupons for cloud computer power. Local governments give them out, worth $140,000 in Beijing up to $1.1 million in Zhejiang. They can cover 100% of costs on big national systems like the Eastern Data, Western Computing project.

Cool features:

• Aimed Help: They go to small businesses making AI for shopping or new medicines, not giant chatbots.
• Real Successes: Companies like DeepSeek used Zhejiang’s vouchers to build cheap AI models, cutting costs by 70% even with weaker chips.
• Big Reach: Shanghai gave out 500 in 2024, leading to 15% more AI inventions there.

But it’s not perfect—big companies like Baidu hog the best machines, and small ones get by with homegrown chips like Huawei’s Ascend.

Model Vouchers: Easy Access to Ready-Made AI

In 2024, China added model vouchers to make AI even cheaper. These cut the price of using approved AI tools by 50-80%. You can only use them for models okayed by CAC, which keeps things in line with China’s rules on content.

How it helps spread AI:

• Business Lift: Beijing pushes it for schools (AI teachers) and banks (spotting scams), with small firms grabbing over $70 million in help last year.
• Stuck in the System: It favors Chinese tools like Alibaba’s Qwen, blocking outsiders and building a closed AI world.
• Fast Growth: In test cities, use tripled, and 20% of new apps now have AI.

Some complain about the paperwork—models need safety checks—but it’s worth it for safe progress.

Visas and Bonuses: Attracting Smart People from Abroad

People are key to AI, so China is rolling out the welcome mat with “visa-plus” deals. No more tough work rules; now provinces offer quick visas, cheap homes, and cash to pull experts from places like Silicon Valley.

Top examples:

• Shenzhen’s Pull: Up to $28,000 a year for foreign PhDs, plus jobs for spouses.
• Zhuhai’s Young Plan: 36,000 cheap apartments for under-35s—free first year, 70% off second—aiming for 100,000 new talents by 2030.
• Shanghai’s Spot: Free office space and six-year cheap homes, bringing in 5,000 experts in 2024.

This ties into “military-civil fusion,” mixing regular jobs with defense. Now, China has 1.5 million AI workers, almost matching the US.

Schools as AI Training Grounds: Building the Future Workforce

To win long-term, China needs lots of trained people. In spring 2025, they rolled out a nationwide AI school program. Kids learn basic coding in primary school, and teens get machine learning in high school. It’s required everywhere, with training for 10,000 teachers and online tools.

Key points:

• Wide Coverage: Over 500 universities now have AI degrees, paid partly by the government.
• Big Jump: AI class sign-ups tripled since 2023, expecting 2 million grads by 2030.

This “everyone in” idea makes sure all citizens know AI, turning them into creators.

Challenges Ahead

It’s not all smooth. China’s own chips are 20-30% slower than NVIDIA’s, subsidies cost a lot (Zhejiang spent $1.4 billion last year), and strict CAC rules slow down bold ideas. Worldwide, US teams like Chip 4 might make things harder.

Why the World Needs to Pay Attention—and Do Something

China’s plan—from vouchers to visas—isn’t just about beating the US; it’s making AI a normal part of life for everyone. For the US, it’s a warning: Scattered rules won’t work. Trying US versions, like chip discounts or easy visas, could help spread AI here too. In this contest, the steady planner with smart tools might beat the fast starter.